Section 259JC | Counteraction where mismatch arises because of a relevant multinational and the UK is the parent jurisdiction ^F1

(1)This section applies where—

(a)the dual territory double deduction amount arises by reason of the company being a relevant multinational company, and

(b)the United Kingdom is the parent jurisdiction.

(2)If some or all of the dual territory double deduction amount is (in substance) deducted (“the impermissible overseas deduction”), for the purposes of a tax under the law of a territory outside the United Kingdom, from the income of any person, for any taxable period, that is not dual inclusion income of the company—

(a)the dual territory double deduction amount that may be deducted, for corporation tax purposes, from the company's income for the deduction period is reduced by the amount of the impermissible overseas deduction, and

(b)such just and reasonable adjustments (if any) as are required to give effect to that reduction, for corporation tax purposes, are to be made.

(3)Any adjustment required to be made under subsection (2) may be made (whether or not by an officer of Revenue and Customs)—

(a)by way of an assessment, the modification of an assessment, amendment or disallowance of a claim, or otherwise, and

(b)despite any time limit imposed by or under any enactment.

(4)In this section “dual inclusion income” of the company means an amount that is both—

(a)ordinary income of the company for an accounting period for corporation tax purposes, and

(b)ordinary income of the company for a permitted taxable period for the purposes of a tax charged under the law of a territory outside the United Kingdom.

(5)A taxable period is “permitted” for the purposes of paragraph (b) of subsection (4) if—

(a)the period begins before the end of 12 months after the end of the accounting period of the company mentioned in paragraph (a) of that subsection, or

(b)where the period begins after that—

(i)a claim has been made for the period to be a permitted period in relation to the amount of ordinary income, and

(ii)it is just and reasonable for the amount of ordinary income to arise for that taxable period rather than an earlier period.